Krm22 Plc Regulatory News (KRM)

KRM22 plc

("KRM22", the "Group" or the "Company")

Half Year Trading Update

KRM22 plc, (AIM: KRM) the technology and software investment company with a particular focus on risk management in capital markets, today issues the following trading update for the six months ended 30 June 2025 (the "Period") which is in line with market expectations.

The Company has continued to make good progress in the Period, increasing the value of its Annual Recurring Revenue ("ARR") from £6.6m at the end of FY 2024 to £7.2m at the end of the Period.

The Company expects to report results for the Period in September 2025, and these are estimated to be:

Approximately 50% of Group ARR is derived from USD denominated contracts and, with a 9 per cent change in GBP: USD FX rates in the Period, ARR at the start of the Period restated using a constant FX rate as at Period end was £6.3m (£6.6m as previously reported using 31 December 2024 FX rates). 

Using constant exchange rates, the change in ARR during the Period was a net increase of £0.9m. This was driven by £1.0m in new ARR, which came from cross-sales to existing customers and contractual price increases. Specifically, cross-sales of the Risk Manager, Limits Manager, and Market Surveillance applications generated £0.9m, while contractual price increases across the same applications added another £0.1m. This growth was partially offset by a customer churn of £0.1m, which was mainly attributed to a single institutional customer cancelling their subscription to the Market Surveillance application.

Since the end of the Period, an additional £0.1m of ARR has been generated through contractual price increases with an existing customer migrating to Risk Manager, on a three year term, from a rolling monthly contract for the legacy At-Trade application. Following industry consolidation, there has been further churn of £0.2m for the Market Surveillance application which, whilst this was anticipated and is disappointing, the customer does continue to use the Limits Manager and Post-Trade applications, with a view to migrating from the legacy Post-Trade application to Risk Manager.

Factoring in the aforementioned changes in ARR since the end of the Period, and the continual fluctuation in FX rates, Group ARR at the date of this announcement continues to be £7.2m using 31 July 2025 FX rates (£7.1m using Period end rates). The Company continues to have a strong pipeline of sales opportunities for the Limits Manager and Risk Manager applications which it expects to close by the end of the year to achieve current market expectations.

The Company's cash balance at the end of the Period was £1.4m, a net increase in cash of £0.4m since FY 2024. The Company expects to continue to operate within its existing cash and debt facilities; however, the Board continues to remain focused on careful cash management as it enters the second half of the year.

Dan Carter, CEO of KRM22, commented: "With £1.0m of new ARR generated in the first half of 2025, primarily from cross sale opportunities, and a substantial pipeline of sales opportunities through the remainder of the year, we are well positioned to continue with progress to becoming a cash generative and profitable business."

The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.

For further information please contact:

KRM22 plc InvestorRelations@krm22.com

Garry Jones, Non-Executive Chairman

Dan Carter, CEO

Kim Suter, CFO

Cavendish Capital Markets Limited (Nominated Adviser and Sole Broker) +44 (0)20 7220 0500

Stephen Keys / Isaac Hooper (Corporate Finance)

Sunila de Silva (ECM)

About KRM22 plc

KRM22 is a closed-ended investment company which listed on AIM on 30 April 2018. The Company has been established with the objective of creating value for its investors through the investment in, and subsequent growth and development of, target companies in the technology and software sector, with a focus on risk management in capital markets.

Through its investments and the Global Risk Platform, KRM22 helps capital market companies reduce the cost and complexity of risk management. The Global Risk Platform provides applications to help address firms' trading and corporate risk challenges and to manage their entire enterprise risk profile.

Capital markets companies' partner with KRM22 to optimise risk management systems and processes, improving profitability and expanding opportunities to increase portfolio returns by leveraging risk as alpha.

KRM22 plc is listed on AIM and the Group is headquartered in London, with offices in several of the world's major financial centres.

See more about KRM22 at www.krm22.com